Comments on: What is accounts aging? http://www.invoiceplace.com/blog/2008/04/24/what-is-accounts-aging/ Invoice Place - The simple to use billing system for small business, home business, consultants, and freelancers. Wed, 30 Sep 2009 08:06:51 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Cladia http://www.invoiceplace.com/blog/2008/04/24/what-is-accounts-aging/comment-page-1/#comment-16332 Cladia Tue, 11 Nov 2008 05:13:23 +0000 http://www.invoiceplace.com/blog/2008/04/24/what-is-accounts-aging/#comment-16332 Classifying accounts by the time elapsed after the date of billing or the due date. The longer a customers account remains uncollected or the longer inventory is held, the greater is its realization risk. If a customers account is past due, the company also has an Opportunity Cost of funds tied up in the receivable that could be invested elsewhere for a return. An aging schedule of accounts receivable may break down receivables from 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. With regard to inventory, if it is held too long, obsolescence, spoilage, and technological problems may result. Aging can be done for other accounts such as fixed assets and accounts payable. -------------------- Cladia <a href="www.widecircles.com " rel="nofollow">Social Bookmarking</a> Classifying accounts by the time elapsed after the date of billing or the due date. The longer a customers account remains uncollected or the longer inventory is held, the greater is its realization risk. If a customers account is past due, the company also has an Opportunity Cost of funds tied up in the receivable that could be invested elsewhere for a return. An aging schedule of accounts receivable may break down receivables from 1 to 30 days, 31 to 60 days, 61 to 90 days, and over 90 days. With regard to inventory, if it is held too long, obsolescence, spoilage, and technological problems may result. Aging can be done for other accounts such as fixed assets and accounts payable.
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